Germany's Uniper stresses diversification and downplays the increasing reliance on US Liquefied Natural Gas

Uniper's Poppinga trusts US LNG system over political concerns

Uniper stresses the need for LNG diversification

US LNG is responsible for 96% Germany's LNG imports

Emily Chow

DOHA, February 4 - The top executive of a German utility Uniper played down European concerns about the growing dependence on liquefied gas from?the United States while he emphasized the need for diversification in supply sources.

The pursuit by President Donald Trump of "energy dominance", has increased European concerns over the heavy reliance on U.S. LNG. This has replaced volumes previously provided by Russia.

Data from analytics firm Kpler revealed that U.S. imports of LNG by the European Union increased more than fourfold between 2021 and 2025 to reach nearly 60 million tonnes.

Carsten Poppinga (Uniper's Chief Commercial Officer) said on the sidelines the LNG2026 Conference: "We don't deal with an administration. We deal with companies that operate in a system, and I trust this system."

"I think it is understandable that U.S. LNG will dominate the market, and I agree, as this is the most cost-effective solution."

UNIPER COO: DIVERSIFY TO MANAGE RISKS

Poppinga says that companies must diversify their portfolios to reduce risk. Uniper is looking to expand its supply sources in Argentina and the Middle East.

Data from Germany's energy regulator revealed that in 2025 it will receive nearly 90% of its LNG and piped gas from Norway, the Netherlands, and Belgium. The total gas supply was made up of 90% piped and 10% LNG.

The United States imports 96% of the LNG through German terminals. Most of these were established after Russia invaded Ukraine in 2022, during Europe's energy crises.

Uniper CEO Michael Lewis said that the company was interested in establishing global energy partnerships and referred to Chancellor Friedrich Merz’s visit to Gulf Region.

"Additional LNG can help diversify Europe’s energy supply, and ensure reliable operation of gas-fired electricity plants compatible with hydrogen from 2030. Lewis stated that long-term contracts offer "price advantages" in this respect.

EUROPE MUST AVOID OVERDEPENDENCE ON ONE SUPPLIER

Egbert Laege is the CEO of German energy company SEFE. He echoed these sentiments and said that Europe should not repeat its past mistakes, becoming too dependent on one supplier or region.

Laege, who spoke at the conference, said that after Russia invaded Ukraine "the first reaction of Europe was looking to the U.S. because there were many?projects?on the brink of being licensed."

"But I believe it would be very bad to only focus on one area,"?he said.

Poppinga has downplayed fears of a global LNG glut as a result of new projects being brought online. He said that Asia's growing demand will absorb any additional volumes.

He said: "It may take some time to rebalance, but I do not believe that there is a structural and long-lasting oversupply." Reporting by Emily Chow from Doha, Additional reporting by Andreas Rinke from Berlin, Writing by Marwa Rashed and Sudarshan Varadhan and Editing by Michael Perry & Bernadette B. Baum

(source: Reuters)